Tesco aims to understand business ethics and its importance in today's business world. Businesses must operate within legal guidelines but also consider social responsibility. Tesco states it will operate ethically for customers. Ethical values like honesty and responsibility are important, as well as business values like efficiency. Tesco has legal responsibilities to consumers, suppliers, and employees regarding issues like product safety, contracts, and workers' rights. While criticized for some practices, Tesco also implements ethical policies around refunds and sourcing standards to treat workers fairly.

1. Unit 14
Business Ethics

2. Aim and purpose
• The aim of this unit is to enable you to
understand the idea of business ethics
and its meaning in today’s business world.

3. • Businesses must operate within the legal
framework set up by the government. The law sets
guidelines and minimum standards that must be
reached.
• As well as this legal responsibility, businesses are
increasingly aware of their social responsibility.
This often takes the form of a public declaration on
values and ethics, and can often be found on
corporate websites.
• One aspect of this is to customers stating that the
business will operate ethically.

4. • Ethical values guide ideas of acceptable
and desirable behaviour above and
beyond compliance with laws and
regulations.
• Ethical values are those such as respect,
honesty, openness and responsibility;
whereas business values often focus on
efficiency, service, quality, growth and
profit.

5. • In this unit learners will select and discuss
a current ethical issue relating to a
selected business, and then consider an
ethical policy for that business.

6. Legal Responsibilities
• Businesses have legal responsibilities to
their consumers, suppliers and employees
– Consumers
• Consumer protection – rights to good
products, rights to return, rights to complain etc
– Suppliers
• Contract law – correct goods/services etc
– Employees
• Rights - Health and safety, working conditions

7. What are business values?
• Business values are the core principles or standards
that guide the way you do business. They sum up
what your business stands for and what makes it
special. While business plans and strategies may
change the core values of your business remain the
same.
• For example - some businesses say that innovation is
one of their core values - they are constantly
developing new products or services and this shapes
their whole approach to business.
• Other businesses may say that they are agile - they
are constantly responding to change and creating new
opportunities for customers.

8. Ethical Values
• Businesses have a certain responsibility
to ensure they conduct their business in a
way that does not offend;
• Other aspects they need to consider are:
– Honesty
– Openness
– Transparency
– Respect
– Fairness

9. Business Values
• In order for a business to be successful,
the following aspects need to be
considered:
– Efficiency
– Service quality
– Growth
– Profit
• If any of the above are not right, the
business will suffer

10. Lets look at a well known
establishment

11. So, what do you really think about
Tesco’s

12. What do you know about the
supermarket known as Tesco
• How many stores are currently in
Leicester?
• Can you name some of the departments
that are in operation within Tesco?
• How many staff do they employ?
• What staff benefits do you think are
generally available

13. What does society think?
• Mixed views maybe...
• Take a look at the clips that follow and
then discuss the attached fact sheet

14. Some adverts about Tesco
Christmas Advert
• http://www.bing.com/videos/search?q=every+little+helps%2c+tesco+advert
&view=detail&mid=C612881F1832E2BF36C3C612881F1832E2BF36C3&fir
st=0
Friends of the earth...
• http://www.bing.com/videos/search?q=every+little+helps%2c+tesco+advert
&view=detail&mid=C612881F1832E2BF36C3C612881F1832E2BF36C3&fir
st=0
New Premises
• http://www.bing.com/videos/search?q=every+little+helps%2c+tesco+advert
&view=detail&mid=C612881F1832E2BF36C3C612881F1832E2BF36C3&fir
st=0
Enthusiastic workforce
• http://www.bing.com/videos/search?q=Tesco+Careers&view=detail&mid=54
C0E0C76541B18AE5AC54C0E0C76541B18AE5AC&first=0

15. Legal Requirements
• Can you list and describe 3 legal
requirements that it would be necessary
for Tesco to follow?

16. Ethical Requirements
• Can you think of any ethical
decisions/actions that Tesco has
implemented?

17. This is one of their ethical policies...
• No quibble refund
• Unhappy with something? We'll give you a
refund with no quibble. As long as you've
not had a nibble.
• If you're trying online shopping for the first
time or maybe you've just ordered items
you no longer need, don't worry. Just hand
back any unwanted items to your driver
when your shopping is delivered and
they'll make sure that you get a full refund.

18. Tesco sourcing standards
• Tesco are founder members of Ethical Trading Initiative(ETI). The
Ethical Trading Initiative(ETI) is a ground-breaking alliance of
companies, trade unions and voluntary organisations. The Ethical
partnership is there to improve the lives of workers across the globe
who make or grow consumer goods - everything from tea to T-shirts,
from flowers to footballs.
• THE ETI BASE CODE
• As a founder member of the Ethical Trading Initiative(ETI), we expect
all our suppliers to meet the standards set out under the ETI Base
Code and guarantee their workers the rights within it:
– Employment is freely chosen
– Freedom of association and the right to collective bargaining are
respected
– Working conditions are safe and hygienic
– Child labour shall not be used
– Living wages are paid
– Working hours are not excessive
– No discrimination is practised
– Regular employment is provided
– No harsh or inhumane treatment is allowed

19. Criticisms of Tesco
• This article concerns criticism of Tesco, a
supermarket chain in the United Kingdom.
Criticism has been directed at Tesco from
various groups, both national organisations
and individuals.
• One of the biggest criticisms it faces is the
perceived threat it poses to small businesses
due to the monopoly it imposes over
products. There is also a belief that they use
aggressive tactics to gain land and/or
planning permission for building new stores.
Other controversial areas concern the
treatment of staff and customers, as well as
their approach to foreign businesses

20. What do you think?
Do some research...
– Using your mobile phone or other suitable
device
• Find out about the good and not so good news
reports about Tesco.
• We will discuss this in class...

21. Assignment 1
Aim and overview
The aim of assignment 1 is to enable learners to understand
differences between businesses values and their ethical
values. To do this you will research and prepare evidence
that shows your understanding of these in a real life business
situation.
Scenario
You are working for an organisation (of your
choice) within their corporate services
department. You have been asked to help put
together some information in an innovative and
exciting way for new employees to introduce
them to the department and your companies’
ethics policy.

22. Assignment 1
• Task 1 (P1), (P2) – Essay/Report under
exam conditions.
• You must complete a brief essay describing
your companies 1. Ethics and 2. Their values.
• Explain the differences between Ethics and
Values.

23. Assignment 1
Task 2 (P3) – Prepare a presentation
• You must then explain why ethics are
important to the organisation and how the
organisation strives to do more than meet
their legal obligations.

24. P3Describe how ethics go beyond the
requirements of the law
• Research details about Tesco’s – find and describe their aims and
objectives
• Type of organisation and structure
• Give basic details
– Types of stores
– location
– Types of goods sold and other services (club cards, Tesco on-line, delivery etc,)
– Advertising
• State why you feel they are successful and who enjoys this
• Who would they have a negative effect and why
• Give an indication of their ethical principals (at least 3)
• Research to find at least 2 points that disprove their ethical claims
• Give examples of legal obligations Tesco’s would have to uphold
– Employees
– customers
• You must then explain why ethics are important to the organisation and how
the organisation strives to do more than meet their legal obligations